Stories
FDA Orders Transparency in Hospital Bills to Curb Exorbitant Drug Prices
- •The FDA has issued a significant order mandating transparency in the billing of medicines and medical devices across all government, private, and trust hospitals in Karnataka.
- •Hospitals are now required to mention both the landing or base purchase price and the MRP of medicines and medical supplies on the patient's bill.
- •The new rule applies to medicines, stents, and disposable supplies, ensuring that charged rates do not exceed the MRP while detailing brand, batch number, and expiry dates.
- •Hospitals must preserve billing records for at least three years, publish price policies on their websites, and comply with the directive starting November 1, 2026.
Key Questions Answered
The FDA issued a directive requiring all government, private, and trust hospitals in Karnataka to mandatorily state both the landing or base purchase price and the MRP of medicines and medical devices on patient bills. Bills must detail individual medicine names, brands, batch numbers, manufacturing dates, expiry dates, and applicable taxes. Furthermore, the final charged rates must not exceed the MRP.
The new FDA rules mandating price transparency and the disclosure of base purchase prices alongside MRPs on hospital bills will come into effect from November 1, 2026.
Hospitals are strictly instructed to preserve medicine purchase invoices, purchase prices, and billing records for at least 3 years. Additionally, they must display price transparency notices at billing counters, pharmacies, and admission departments, and publish their price transparency policy on their website.
